March 2, 2022
Three reasons stable value funds can withstand rising interest rates
Concerned about the effects rising interest rates could have on stable value funds? Learn why the current environment may not be cause for alarm.
John Hancock stable value funds
provide plan sponsors and participants with a capital preservation option backed by John Hancock’s 150-year history and proven financial strength, stability, and stable value investment expertise.¹
Guaranteed principal and interest to deliver stable and steady returns
Well-diversified, investment-grade, fixed-income portfolios
Designed for plan participants who are:
- Conservative and risk averse
- Concerned with market volatility
- Approaching retirement
Benefits for plan sponsors:
- A competitive crediting interest rate
- A transparent structure
Learn more with our white papers
Backed by the financial strength of John Hancock
A+
A.M. Best Company
(2nd highest of 13 ratings)
Superior ability to meet ongoing insurance obligations
AA–
S&P Global Ratings
(4th highest of 21 ratings)
Very strong financial security characteristics
A1
Moody’s Investors Services
(5th highest of 21 ratings)
Low credit risk
AA–
Fitch Rating
(4th highest of 21 ratings)
Very strong capacity to meet policyholder and contract obligations
John Hancock offers two stable value funds
Both seeking to preserve capital and provide stability of principal while earning current income.
John Hancock Stable Value Guaranteed Income Fund |
John Hancock Stable Value Fund |
|
Structure |
Group annuity contract or rider |
Pooled collective investment trust |
Inception date |
December 2019 for open-architecture plans June 2020 for Signature plans |
May 2, 2006 |
Guarantor/insurer and Standard & Poor's rating |
John Hancock Life Insurance Company (U.S.A) (AA–) |
Four external insurance providers:
|
Minimum investment |
No minimum |
No minimum |
Crediting rate reset |
Semiannually, January 1 and July 1 |
Monthly |
Portability² |
Yes |
Yes |
The AA– rating is Standard & Poor’s assessment of the financial strength and claims-paying ability of the insurance company. Standard & Poor's defines companies with "AA" ratings as: "An insurer rating 'AA' has very strong capacity to meet its financial commitments."
Related viewpoints
July 7, 2020
What’s the difference between stable value and money market funds?
Learn key differences between stable value and money market funds.
January 31, 2020
Stable value due diligence
Learn about stable value funds and how to evaluate them.
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January 22, 2020
How stable value funds work
Stable value funds are important principal preservation vehicles. Plan sponsors and financial representatives need to understand how they work.
Find out if a John Hancock stable value fund is right for your plan
Our funds are available for 401(k), 401(a), and Taft-Hartley plans and have no initial investment minimums. We've been managing stable value assets since 2006, and we can help you understand how stable value can fit in your investment lineup.
1 Financial strength ratings, as of 12/31/21 and subject to change, apply to the main life operating companies of Manulife Financial Corporation, including The Manufacturers Life Insurance Company, John Hancock Life Insurance Company (U.S.A.), John Hancock Life & Health Insurance Company, and John Hancock Life Insurance Company of New York as a measure of the respective issuing company’s ability to meet its ongoing insurance and contract obligations. The ratings are not an assessment or recommendation of specific products, the performance of these products, the value of any investment in these products on withdrawal, or the individual securities held in any portfolio. 2 Portability to a new recordkeeper requires that recordkeeper to enter into a fund distribution agreement with John Hancock.
Important disclosures
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. There is no guarantee that any investment strategy will achieve its objectives. Investing involves risks, including the potential loss of principal.
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
Stable value portfolios typically invest in a diversified portfolio of bonds and enter into wrapper agreements with financial companies to prevent fluctuations in their share prices. Although a portfolio will seek to maintain a stable value, there is a risk that it will not be able to do so, and participants may lose their investment if both the fund's investment portfolio and the wrapper provider fail.
MGTS-P41165 GE 5/20 41165 MGR0521201185686